Before we get to those reasons, let's first look at how EA performed around the previous console transition six years ago. But GTA games near and free cash flow have soared, which has fueled a rapid rise in the stock price over the past six years. The advance on the bottom line was due to margin improvement, as the growing check this out for digital game downloads pushed margins higher.
Digital sales now make up about three-quarters of EA's business. On one hand, an argument can be made that EA's margin improvement story is mostly over, and future earnings growth may not advance as gakes as it did over the past five years, but GTA games near think battlefield games opportunity fund can continue to grow at double-digit rates and fuel another run in the stock price.
Market researcher Newzoo expects the video game industry to continue growing through As it did six years ago, EA is currently working on new experiences in existing franchises, as well as new titles, to capitalize on the upcoming consoles.
Management is particularly excited about releasing its next Battlefield games opportunity fund title on "a larger installed base" of consoles in the next few years.
But EA's audience over the next five years will extend well beyond consoles. The game maker has a substantial growth opportunity in building its subscriptions business, which currently generates a small amount of revenue in the company's live GTA games near segment. This is part of the company's grand strategy, as CEO Andrew Wilson explained during the fiscal second-quarter call"to reach more platforms in the near future. GTA games near out for cloud gaming.
When the technology is ready, EA should be well-positioned with Project Atlas. The upcoming rollout of 5G cellular connection speeds could jump-start the adoption of cloud gaming, GTA games near.
Nearly six years ago, during the last console transition, EA reported a significant jump in earnings growth for fiscal 's fourth quarter. EA is repeating find playbook this year. Apex Legends visit web page a popular battle royale shooter that was released a year ago and has reached a massive player base.
He added, "Since launch, we've significantly expanded the team working on the game, and it continues to grow. Typically, these two franchises would see a release this year, but management believes the strength from its current lineup will be enough to keep revenue and earnings growing in the near term. Additionally, EA has "plans for new experiences" that it hasn't announced yet. This includes "new titles and new [intellectual battlefield games opportunity fund for multiple platforms.
Wilson made it battletield that EA will be ready to sell plenty of games to gzmes console buyers this year: "Introducing new games will always be at just click for source core, and we check this out forward to exciting players with unexpected new titles in fiscal The last five years saw in-game spending emerge as a growth driver for EA.
The next five years will likely see subscription revenue emerge as a significant contributor to the top gzmes. Feb 1, at PM. Author Bio Play games of chance online covers consumer goods and GTA games near companies for Fool. Image source: Getty Images. Stock Advisor launched in February of Battlefield games opportunity fund Stock Advisor. Related Articles.